Increasingly interconnected global financial markets provides access for market participants in
different countries. Stock market in particular is very important for economic development as
providers of capital for companies. Most market participants enter the market to grow or hedge
their funds against inflation. The basic principle of investing, particularly in stocks, is to calculate
the risk and return of securities by taking into account external variables such as economic trends
and global reference sector prices, such as commodities. One of the indicators that investors utilize
while investing in the capital market, particularly in equities, is the index. This paper focus on
MSCI index, the market capitalization of stock market index of companies worldwide, as the
benchmark of stock prices. Also, this study analyzed the effect of commodity price indices,
retrieved from IMF database towards MSCI All Country World Index (ACWI) index in the period
of 2012-2021. The results of this study showed that precious metals index and energy index has a
significant correlation towards MSCI ACWI, while food index does not.